The right-back’s contract at the Emirates expires this summer and he will be a free agent in the summer transfer window. Arsene Wenger was keen on extending his stay at the North London club, but was unsuccessful in tying the Gunners star into a new deal.

The report claims the Citizens are closing in on sealing a deal for the French international, which will see him earn £120,000 per week at the Etihad.

City have the services of Pablo Zabaleta and Micah Richards as the first choice right-back in the squad. The latter is likely to leave his current employers after having spent his time with the Citizens, starting from his youth days.

A report from Sky Sports suggest the England international will be one of the players to leave the Etihad. Manuel Pellegrini looks to balance the book in order to meet the punishment handed by the UEFA for breaching the Financial Fair Play.

The acquisition of Sagna will see them sign the Frenchman on a free transfer, meaning the City need to keep aware the net transfer budget of £49m in signing and the sale of players. The former Malaga manager is looking to strengthen the squad in the summer transfer window.

A move to City for Sagna could see him first team appearances being restricted as Zabaleta has cemented his place in their starting lineup. However, he could provide competition for a place in the playing XI for the Argentine international.

Sagna is believed to be wanting an improved offer, which is not being met by the Emirates club. Should the Gunners full-back leave the club, Wenger could then move into the transfer market in search of a replacement for his compatriot.

According to The Telegraph, Arsenal are edging towards signing Toulouse right-back Serge Aurier as a replacement for Sagna at the Emirates.